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ACCT 402 Spring 2011 Syllabus—January 21, 2011 version
Department of Accounting
Mihaylo College of Business and Economics
California State University – Fullerton
Mission Statement: Our mission is to offer high-quality accounting educational programs that are relevant to a diverse group of undergraduate and graduate students. The Department of Accounting recognizes its role in society by assisting students as they prepare for successful careers in the accounting profession. The Department of Accounting also strives to advance accounting education and knowledge through basic, applied and pedagogical research and other scholarly activities and to promote valuable associations with business and professional communities. (Revised 2/08)
Department of Accounting -- Office: SGMH 4313
Phone: 657-278-2225 Fax: 657-278-4518
Website: http://business.fullerton.edu/accounting/
Email:
SPECIAL NEEDS
During the first week of classes, inform the instructor of any disabilities or special needs that you have that may require special arrangements related to attending class sessions, carrying out writing assignments or learning components, or taking examinations. Students with disabilities need to document the disability at the Disabled Students Services office in UH 101.
ACCOUNTING ETHICS STATEMENT
Integrity plays a vital role in the accounting profession. As a result, the Accounting Department has expectations that our students behave in a manner consistent with the demands and expectations of the accounting profession. It is the view of the Accounting Department, that the use of all unauthorized materials, regardless of the manner obtained, are a violation of the Mihaylo College of Business and Economics Student Code of Ethics. This include, but it is not limited to, obtaining and using solutions manuals, test banks and all other copy-written materials from course textbooks not authorized by the course instructor; obtaining and using homework assignments, cases, or exams from prior students. Faculty members will report all incidents involving students who are expected of lying, deception, plagiarism, and cheating (both attempted and actual) to the Dean of Students, Judicial Affairs and the chair of the Accounting Department according to UPS 300.021 and UPS 300.030 (October 2010).
ACADEMIC DISHONESTY (CSUF UPS 300.021, (‘09-’11 CSUF Catalog pg. 77)):
Academic dishonesty includes such things as cheating, inventing false information or citations, plagiarism, and helping someone else commit an act of academic dishonesty. It usually involves an attempt by a student to show a possession of a level of knowledge or skill, which he/she does not possess.
§ Cheating is defined as the act of obtaining or attempting to obtain credit for work by the use of any dishonest, deceptive, fraudulent, or unauthorized means. Examples of cheating include, but are not limited to, the following: using notes or aides or the help of other students on tests and examinations in ways other than those expressly permitted by the instructor, plagiarism as defined below, tampering with the grading procedures, copying verbatim another students assignments, and collaborating with others on any assignment where such collaboration is expressly forbidden by an instructor. Violation of this prohibition of collaboration shall be deemed an offense for the person or persons collaborating on the work, in addition to the person submitting the work.
§ Plagiarism is defined as the act of taking the specific substance of another and offering it as one’s own without giving credit to the source. When sources are used, acknowledgement of the original author or source must be made following standard scholarly practice.
Students who violate university standards of academic integrity are subject to disciplinary sanctions, including failure in the course and suspension from the university. Since dishonesty in any form harms the individual, other students and the university, policies on academic integrity are strictly enforced. Academic dishonesty, in any form, when detected, will result in zero points on assignments or tests, and may results in an F for the course plus additional University-level disciplinary action by judicial affairs. For additional information refer to the University policy in the current CSUF Catalog.
ASSESSMENT TOOLS
The main purpose of the degree program at the Mihaylo College of Business & Economics (MCBE) at Cal State Fullerton is to provide you with the knowledge and skills that prepare you for a successful career in business. In order to assist us in achieving this goal, we will use a number of assessment tools to track your progress throughout the MCBE curriculum. Please expect to participate in MCBE assessment activities in several of your courses while at the MCBE. As you do so, you will assist us in identifying our program’s strengths and weaknesses as well as areas for potential improvement. In other words, you are making an important investment in the value of your degree.
DROPS, WITHDRAWALS, AND INCOMPLETES
The University policy on drops will be followed. See the University Catalog for relevant procedures and dates. A grade of I is appropriate only if circumstances beyond a student’s control force the student to miss a significant portion of the latter part of a course.
UNIVERSITY POLICY ON FINAL EXAMINATIONS
Final examinations, if required by the instructor, will be given at times scheduled by the University. Once established, the final examination scheduled may not be changed unless approved by department and program chairs and the dean of the college. No make-up final examination will be given except for reason of illness or other verified emergencies.
EMERGENCY PROCEDURES NOTICE TO STUDENTS
The safety of all students attending California State University Fullerton is of paramount importance. During an emergency it is necessary for students to have a basic understanding of their personal responsibilities and the University’s emergency response procedures. In the event of an emergency, please adhere to the following guidelines.
BEFORE AN EMERGENCY OCCURS
1. Know the safe evacuation routes for your specific building and floor.
2. Know the evacuation assembly areas for your building.
WHEN AN EMERGENCY OCCURS
1. Keep calm and do not run or panic. Your best chance of emerging from an emergency is with a clear head.
2. Evacuation is not always the safest course of action. If directed to evacuate, take all of your belongings and proceed safely to the nearest evacuation route.
3. Do not leave the area. Remember that faculty and other staff members need to be able to account for your whereabouts.
4. Do not re-enter building until informed it is safe by a building marshal or other campus authority.
5. If directed to evacuate the campus, please follow the evacuation routes established by either parking or police officers.
AFTER AN EMERGENCY OCCURS
1. If an emergency disrupts normal campus operations or causes the University to close for a prolonged period of time (more than three days), students are expected to complete the course assignments listed on the syllabus as soon as it is reasonably possible to do so.
2. Students can determine the University's operational status by checking the University's web site at http://www.fullerton.edu, calling the University's hotline number at 657-278-4444, or tuning into area radio and television stations. Students should assume that classes will be held unless they hear or read an official closure announcement.
EMERGENCY CALLS
DIAL 9-1-1All campus phones and cell phones on campus reach the University Police Department
Non-emergency line: (657) 278-2515
24-hour recorded emergency information line:
(657) 278-4444
Department of Accounting
Mihaylo College of Business and Economics
California State University – Fullerton
Accounting 402
Auditing
Spring 2011
SYLLABUS
Students in my sections will have hands-on experience with SAP, bioLock, Cherry biometric keyboards, and WRDS.
California State University, Fullerton is a member of SAP’s University Alliance Program
SAP is a registered trademark of SAP AG
http://business.fullerton.edu/resources/sap/
http://www.realtimenorthamerica.com/
http://www.cherrycorp.com/
Wharton Research Data Services
http://wrds.wharton.upenn.edu/
Instructor
Name:Paul Sheldon Foote
Office: 4320 Steven G. Mihaylo Hall (SGMH-4320), Fullerton campus
IRVC 237, Irvine Campus
Office Hours (by appointment):
Mondays, 4:45 – 6:45 PM, Fullerton campus
Tuesdays and Thursdays, 2:45 – 3:45 PM, Fullerton campus
Wednesdays, 5:45 – 6:45 PM, Irvine campus: 3 Banting Road, Irvine, CA 92618-3601
Telephone: (657) 278-2682 Fullerton
Telephone: (657) 278-1746 Irvine
Fax: (657) 278-4518 Fullerton
Website: http://business.fullerton.edu/accounting/pfoote
Email:
Classes
Fullerton Campus
Class Time: Tuesdays and Thursdays, 4:00 – 5:15 PM
Class room: SGMH 1307
Section Number: 3
Schedule Number: 15255
Units: 3
Class Time: Tuesdays, 7:00 – 9:45 PM
Class room: SGMH 2201
Section Number: 4
Schedule Number: 15456
Units: 3
Pre-requisites:
Accounting 301B, 302 and 307, with grades of “C” (2.0) or better, and Business Admin 301. Students who do not meet these prerequisites may be administratively dropped from the class at any time during the semester. Students choosing to withdraw from this course are responsible for doing so according to University procedures and deadlines. If you fail to complete the appropriate withdrawal paperwork at the Registrar’s office and to obtain required approval signatures after the midterm examination, you will receive an F for the course.
Note to graduate students: You may take this undergraduate course if you are required to do so to meet pre-requisite requirements for entering graduate programs. However, graduate students may not take this course for graduate course credit.
Description:
ACCT 402 Auditing – AccountingThe auditing standards and procedures used by financial and operational auditors. Management information and computer systems, internal control, audit evidence, professional responsibilities and legal liabilities, standards of reporting financial information. Units: (3)
Required Textbook:
Arens, Alvin A., Randal J. Elder, and Mark S. Beasley, Auditing and Assurance Services: An Integrated Approach, Thirteenth Edition, Prentice Hall, 2010. ISBN-13: 978-0-13-608473-0; ISBN-10: 0-13-608473-7
Be sure that your copy includes the ACL software inside the back cover of the textbook.
Supplements:
PowerPoint slides will be provided at Blackboard.
Course Objectives
The objective of this course is to cover the audit process via textbook explanations augmented by hands-on software and research projects.
Teaching Method:
Accounting is not a spectator sport. Take and revise notes in your own words. Part of this course includes activities other than taking examinations, including hands-on experiences with ACL auditing software, SAP, bioLock, and with Cherry biometric keyboards.
The midterm and final examinations will contain multiple-choice questions. You will need SCANTRON Form 882, number 2 pencils, and clean erasers. Vague understandings of general concepts will be insufficient for passing examinations. Take extensive notes in your own words. You should attempt to answer all “Multiple Choice Questions from CPA Examinations” at the end of each chapter before you see the answers. After seeing the answers, you should write explanations in your own words explaining why the correct answers are correct and the wrong answers are wrong. Use a CPA Review web site or buy a CPA Review Auditing book to study more questions.
The examinations will be: (1) closed books and notes (2) assigned seating (3) more than one version. There may be other formats for examination questions, such as: quantitative problems or short answers. There will never be any true/false format questions.
Class Attendance: Your prompt and faithful attendance could make the difference between success and failure in this course. You might be called upon to present your research findings in class. Do not use class time for non-course activities, such as sending and receiving text messages.
Bookstores:
Titan Bookstore, 800 North State College Boulevard, Fullerton, CA 92834, (714) 278-3418, (714) 278-2031 FAX.
You may purchase textbooks online at:
http://bookstore.fullerton.edu
Titan Bookstore has a low price guarantee. If you learn that another local bookstore is selling textbooks for less than what you paid at Titan Bookstore, complete a low price guarantee refund request at the Titan Bookstore in Fullerton.
Text Mart, 2436 East Chapman Avenue, Fullerton, CA 92831, (714) 449-7999, (714) 449-7990 FAX
Little Professor Book Center
725 N. Placentia Avenue
Fullerton, California 92831
(714) 996-3133
http://fullertontextbooks.com/
There are many Web sites to help you find the best online book prices. Simply perform an Internet search for: college textbooks. Buy your textbook early.
Topics Covered in Auditing:
PART 1 The Auditing Profession
1. The Demand for Audit and Other Assurance Services 3
2. The CPA Profession 25
3. Audit Reports 45
4. Professional Ethics 75
5. Legal Liability 111
PART 2 The Audit Process
6. Audit Responsibilities and Objectives 139
7. Audit Evidence 171
8. Audit Planning and Analytical Procedures 207
9. Materiality and Risk 247
10. Section 404 Audits of Internal Control and Control Risk 289
11. Fraud Auditing 337
12. The Impact of Information Technology on the Audit Process 371
13. Overall Audit Plan and Audit Program 403
PART 3 Application of the Audit Process to the Sales and Collection Cycle
14. Audit of the Sales and Collection Cycle: Tests of Controls and
Substantive Tests of Transactions 443
15. Audit Sampling for Tests of Controls and Substantive Tests of
Transactions 481
16. Completing the Tests in the Sales and Collection Cycle: Accounts
Receivable 525
17. Audit Sampling for Tests of Details of Balances 565
PART 4 Application of the Audit Process to Other Cycles
18. Audit of the Payroll and Personnel Cycle 609
19. Audit of the Acquisition and Payment Cycle: Tests of Controls,
Substantive Tests of Transactions, and Accounts Payable 633
20. Completing the Tests in the Acquisition and Payment Cycle:
Verification of Selected Accounts 667
21. Audit of the Inventory and Warehousing Cycle 695
22. Audit of the Capital Acquisition and Repayment Cycle 727
23. Audit of Cash Balances 749
PART 5 Completing the Audit
24. Completing the Audit 777
PART 6 Other Assurance and Nonassurance Services
25. Other Assurance Services 809
26. Internal and Governmental Financial Auditing and Operational
Auditing 835
Appendix: ACL Installation and Instructions 859
Student Computer Labs:
Fullerton Campus
Student Computer Lab in SGMH1105 (Steven G. Mihaylo Hall)
http://business.fullerton.edu/studentservices/shared.htm
Irvine Campus
Student Computer Lab (IRVC 211)
http://www.fullerton.edu/irvinecampus/
Recommended Web Sites: